A Quick Analysis on Nifty & Bank-Nifty
Their are various methods of analyzing charts, one of the most popular method is by reading Price Action & technical.
But wait, Don't you think reading Price-Acting May vary person to person and another person may have the opposite opinion than other?
well, I'm not saying that PA is not good, it is! but it involves discretion which comes from years of experience.
But what if we have some kind of data which is back-tested and repeats over time?
Going to discuss one of the methods i found really fantastic to analyze the future trends & volatility based on its seasonality.
BANKNIFTY
This is 6 year seasonal tendency for bank nifty and i want you to notice something.
Look at the month of September, yes once you see it you cant unsee.
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From last 6 Years Bank nifty gives a Deep correction each year.
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This correction is every time bigger then the month of august.
Now have a look on Nifty
NIFTY50
This is seasonality for 13 Years!
Again have a look on Mid September, yes once you see it you cant unsee this!
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Since last 13 Years Nifty have been seen doing correction which starts from Mid september.
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This correction is always bigger then the month of August.
Conclusion
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Investors should start investing after Mid September
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Longs should start booking their positions in this upcoming rally (Before Mid Sep)
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Anyone thinking to create swing positions can start making it and can book by the mid September as the rally is already started for a temporary ATM.
Thankyou!